Wage-Labor And Capital

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Thereupon the economists will tell you : — "We admit that competition among the workers will 34 FREE TRADE certainly not be lessened under free trade, and will very soon bring wages into harmony with the low price of commodities. But, on the other hand, the low price of commodities will increase consumption, the larger con- sumption will increase production, which will in turn necessitate a larger demand for labor, and this larger de- mand will be followed by a rise in wages.
"The whole line of
... argument amounts to this: Free trade increases productive forces. When manufactures keep advancing, when wealth, when the productive forces, when, in a word, productive capital increases, the demand for labor, the price of labor, and consequently the rate of wages, rises also." The most favorable condition for the workingman is the growth of capital. This must be admitted: when capital remains stationary, commerce and manufacture are not merely stationary but decline, and in this case the workman is the first victim.

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